As Amazon courts cities across the U.S. to determine the location of their next headquarters, a new proposed tax in Seattle has halted planned expansion of existing facilities. The tax would charge every large company $500 per employee to fund the city's affordable housing initiatives, and some experts claim Amazon's hesitation to pay may scare off finalists for the new headquarters.
In an article for TheStreet, Robert Baumann, professor of economics at Holy Cross, dismisses these concerns saying, "They are a unique company. There aren't many companies that bring the type of bargaining power to the table that Amazon does."
According to Baumann, this bargaining power will likely outweigh any fears municipalities may have, especially considering most cities have enticed Amazon with tax breaks and other incentives. "I can't see this affecting the level of interest from the HQ2 finalists. It's hard to deny bringing in thousands of six-figure paying jobs if you are an elected official in these municipalities," Baumann said.
Professor Baumann's comments were also featured in POLITICO's Morning Tax, a morning run-down of the day's tax news. He has been a sought-after expert for the media on this topic, as well as the issue of Amazon's marketplace dominance, having been quoted by TheStreet in multiple articles.
You can read the full article at TheStreet.
Relevant Coverage:
- The Street, Mar. 29
- The Street, May 20
